Kenya has formally requested a new lending arrangement with the International Monetary Fund, Finance Minister John Mbadi announced Monday.
This development follows the mutual decision last week to conclude the existing program with approximately $800 million remaining undisbursed.
Mbadi firmly refuted reports suggesting disagreements with the IMF, emphasizing the move was due to time constraints.
The finance minister clarified that ongoing discussions aim to incorporate the unutilized funds into the prospective program.
The previous arrangement, initiated in April 2021, comprised a substantial $3.6 billion in credit and fund facilities.
Despite the conclusion of the ninth review, Mbadi asserted that the IMF views Kenya’s economic fundamentals favorably, particularly its debt sustainability metrics.
While the IMF has yet to comment on the specifics of the new request, they confirmed that discussions are underway.
Notably, S&P Global Ratings indicated that any disruption in IMF disbursements could potentially affect other anticipated funding.
However, Mbadi stated that a forthcoming World Bank loan is independent of the IMF program.